The government has been putting emphasis on the nation's transition to cashless transactions so much so that it aims to attain hundred per cent digital payments by 2041.
Transactions through VISA and credit cards and mobile financial services, such as bkash and Nagad, and online banking have accelerated over the last one decade.
During the time, state-run and private financial service providers offered innovative solutions, encouraging businesses and people of all strata to adopt digital tools to pay utility bills, receive remittance, transfer money and make payments for healthcare, education and almost everything else.
But the Internet blackout since Friday midnight and the resulting shutdown of all digital payment networks raise questions about the nation's preparedness for a situation like this. The emergence of the crisis draws renewed attention to the importance of cash.
According to the Bangladesh Bank, about Tk 145 billion will be saved annually only by replacing cash transactions with digital payments if the government can do away with printing money, its physical maintenance and delivery, delayed payments and missed opportunities involved.
The National Digital Payment Roadmap 2022-2025 also says if the government can ensure digital payments in all conventional transactions, the gross domestic product (GDP) will increase by 1.7 per cent, which can be translated into addition of $6.2 billion into the economy.
The escalating political tension and street violence centing on protests for reforms to the quota system in government jobs have led to the shutdown of broadband and mobile internet. That caught everyone off guard when everything from sales and purchases of groceries to big business transactions became impossible digitally.
The experiences will give some lessons. Business institutions and individuals may consider stepping back from the progress made in enabling and participating in cashless transactions, fearing the repetition of what they are dealing with now. However, there must be ways to overcome the challenges, with stronger IT infrastructures.
Officials of the central bank, having involvement in monitoring and promoting the countrywide cashless transactions, lay importance on strong networks to keep the services unaffected. On the other hand, businesses are more comfortable with cash transactions.
On the drive towards cashless economy, Chief Financial Officer of Square Pharmaceuticals Mohammed Zahangir Alam said multiple backups must be ensured so that communications and transactions in trade and commerce do not face any disruptions.
"High dependency on cashless transactions entails high risks. Damage will be on a similar scale when transactions will fail because of any Internet blackout," said Mr Alam.
"The problem is that the country's overall IT infrastructure is dependent on a uniform network system built and supported by the government," said Mezbaul Hoque, an executive director of the Bangladesh Bank.
Financial institutions have not yet introduced networks of their own considering it a cost burden. "The situation has given us a lesson that it's time to strengthen our network systems," said Mr Hoque. Apart from strengthening the uniform network, individual networks should be introduced.
Mr Alam said the drug maker at present mainly conducts cash transactions. Across the country, the company has 32 depots through which products are sold in cash. On receipt of an invoice, a dealer pays cash, which is then deposited into bank accounts through agent banking. The company has its own designated network allowing communications with clients even when the national gateway of Internet is closed.
Against the backdrop of most Internet-enabled financial channels shut, some banks have made their ATMs functional and mobile financial services started operating on a limited scale.
Some old ATM booths are working during the curfew enforced by the government since Friday midnight to contain violence but the newly-opened booths do not work as they need 4G network systems.
So, changes are needed in the network systems.
However, problems that people and businesses have encountered in the last few days will be compiled and discussed to find solutions in ensuring smooth cashless transactions in the future, said the BB official.
On possible solutions, Shamsuddin Haider Dalim, head of corporate communications of bkash, said alternative systems should be put in place for the continuation of cashless transactions when the main network fails.
For example, bkash facilitates financial transactions through mobile apps that need Internet and also through un-structured data management system of mobile operators.
No internet is required to avail of services through un-structured data management system. "Services have limitations but at least people are able to make some transactions that are urgent."
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